MoonLake Immunotherapeutics (NASDAQ:MLTX) traded higher on Tuesday after RBC Capital Markets launched its coverage with an Outperform recommendation and a $67 price target, citing an annual sales opportunity worth up to $2B for its lead asset sonelokimab (SLK).
Analyst Brian Abrahams’ bullish view comes as MoonLake (NASDAQ:MLTX) prepares to share data from a Phase 3 trial for SLK against a skin condition known as hidradenitis suppurativa (HS) in mid-2025.
The analyst expects the Swiss biotech’s trial VELA to show statistically significant benefits for SLK in HS and indicate a placebo-adjusted effect outperforming main competitor Bimzelx developed by UCB (OTCPK:UCBJF) (OTCPK:UCBJY).
Even with a less differentiated clinical profile, SLK can create a market opportunity worth $500M-$1B in annual sales, and if approved as an earlier line therapy, it creates an annual sales opportunity worth $2.5B, Abrahams argued.
“While stepping in post-data for a large, underappreciated HS market could be a strategy for more risk-averse investors, with our view that most data scenarios play out positively for SLK and MLTX shares, we would be buyers here,” he added.
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